The AUD is the strongest. The JPY is the weakest
The strongest currencies today are the AUD and the NZD. The weakest is the JPY.
The commodity currencies (sans the CAD which has election hangover), have pushed higher The RBA had a chance to put a rate cut on the table in the minutes but they were more upbeat on the domestic economy. They also were not overly concerned about China. This helped both the AUD and the NZD.
Technically, the AUDUSD based ahead of a support floor at the 0.7232-38 area (the low came in at 0.7240). The failure to pierce and stay below this level was enough to get the ball rolling in the upward direction. In the London morning session, the pair has moved up and down - above and below the converged 100 and 200 hour MA at the 0.7287 level. Traders will be looking for a momentum move away from here. On the last corrective move down, the pair did find support at the broken 38.2% at the 0.72678. This will be a confirming level to get below if the downside is explored. If the day trend higher continues, the 0.7306-11 becomes the next upside target area, followed by the 100 day MA at the 0.7342 area.
The weakest currency is the JPY. The JPY is only modestly lower vs the USD in my snap shot this morning (down -0.16%), but is down more against the EUR, AUD and NZD.
The EURJPY has used the 100 hour MA as resistance yesterday and again on Friday. ON the downside, the 50% area formed a double bottom at 135.05. When the 100 hour MA was broken, one final test proved to be enough for another leg higher in trading today. The price is now above the 200 hour MA at the 135.87 level and that is now support in trading today.
